Hotel Chocolat, once hailed as a pioneer in the chocolate market, is facing a challenging period. The company, led by the charismatic Angus Thirlwell, aimed to revolutionize the perception of chocolate in England by introducing innovation and excitement to the industry. This dedication even resulted in a two-part documentary series aired on Channel 5. However, the current economic landscape, characterized by high inflation, rising wages, and increased cocoa costs, has impacted Hotel Chocolat’s profitability. The company recently issued its second profit warning in two months and experienced disappointing Easter sales. As a consequence, it is unlikely to meet its current earnings forecasts, leading some brokers to speculate that it may become a takeover target. Shares have dropped significantly, leaving some to question its value and attracting interest from competitors like Nestle or Ferrero. Meanwhile, the FTSE 100 and FTSE 250 have both suffered losses, with the former enduring its first entirely negative week since October 2020. Safe haven assets, such as Big Tobacco, have seen increased investment, with British American Tobacco and Imperial Brands experiencing modest gains. Imperial Brands has also secured a £65 million contract to purchase nicotine pouches from Canada’s TJP Labs. Notably, travel-related stocks, including IAG, Ryanair, and Easyjet, have faced declines as soaring mortgages threaten the industry. Similarly, housebuilders like Persimmon, Redrow, and Berkeley have been adversely affected. Energy giants BP and Shell have also experienced losses due to concerns about falling demand for oil amid potential interest rate hikes. It is important to note that some links within this article may be affiliate links, contributing to the funding of This Is Money without compromising our editorial independence.
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